Scenario Granite Guide raises this Florida point. A Florida appraiser is using the income approach on a small income property with net operating income of $24,000 and an overall capitalization rate of 9.00%. What value indication results?
Correct Answer
D) $266,666.67
Under direct capitalization, value = NOI ÷ cap rate. So $24,000 ÷ 9.00% = $266,666.67.
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Previous Question
In a Florida sales-comparison problem, a comparable sold for $465,000. The comparable is inferior to the subject in one item requiring a +$12,000 adjustment and superior in another item requiring a -$7,000 adjustment. What is the adjusted sale price of the comparable?
Next Question
A Florida appraiser is valuing a 20-year-old single-family home in a well-established Orlando neighborhood with many comparable recent sales. The property is owner-occupied and in good condition. Which appraisal approach would typically be given the most weight in this valuation?